Playtech (LON: PTEC) issued an official statement on Wednesday, confirming its doubts over the shareholders’ clearance for the takeover deal by Aussie slot machine maker, Aristocrat Leisure.
Though the voting process for the takeover deal is still not over, the concerns surfaced based on the proxy voting results. Playtech needs approval from at least 75 percent of its shareholders for the proposed acquisition deal to pass through.
The company, which is a major supplier of gambling software, received a £2.7 billion ($3.7 billion) takeover bid from Aristocrat last October. Though two other parties also showed interest in acquiring the London-listed company, they eventually withdrew themselves from the race.
Aristocrat agreed to purchase Playtech shares at 680 pence apiece, but the PTECH shares are trading around 577 pence, as of press time. The value of Playtech shares peaked in November, touching 770 pence.
Alternative Proposal
The Board of the Playtech further detailed that they are also considering alternative proposals in case the deal falls through. The company is primarily considering breaking up its B2B and B2C divisions and then attracting separate buyers for them.
“Playtech remains in a strong position and continues to perform very well across its core B2B and B2C businesses,” Playtech CEO, Mor Weizer said in a statement. “This progress reflects the quality of our technology and products and the hard work and commitment of our talented team.”
“We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements (including Caliente) that are already allowing Playtech to access newly opened gaming markets.”
Earlier, Playtech sold its financial division Finalto to Hong Kong-based fund Goper for a consideration of $250 million. The companies are now expecting to close that deal by the second quarter of 2022, according to the latest update.
Playtech (LON: PTEC) issued an official statement on Wednesday, confirming its doubts over the shareholders’ clearance for the takeover deal by Aussie slot machine maker, Aristocrat Leisure.
Though the voting process for the takeover deal is still not over, the concerns surfaced based on the proxy voting results. Playtech needs approval from at least 75 percent of its shareholders for the proposed acquisition deal to pass through.
The company, which is a major supplier of gambling software, received a £2.7 billion ($3.7 billion) takeover bid from Aristocrat last October. Though two other parties also showed interest in acquiring the London-listed company, they eventually withdrew themselves from the race.
Aristocrat agreed to purchase Playtech shares at 680 pence apiece, but the PTECH shares are trading around 577 pence, as of press time. The value of Playtech shares peaked in November, touching 770 pence.
Alternative Proposal
The Board of the Playtech further detailed that they are also considering alternative proposals in case the deal falls through. The company is primarily considering breaking up its B2B and B2C divisions and then attracting separate buyers for them.
“Playtech remains in a strong position and continues to perform very well across its core B2B and B2C businesses,” Playtech CEO, Mor Weizer said in a statement. “This progress reflects the quality of our technology and products and the hard work and commitment of our talented team.”
“We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements (including Caliente) that are already allowing Playtech to access newly opened gaming markets.”
Earlier, Playtech sold its financial division Finalto to Hong Kong-based fund Goper for a consideration of $250 million. The companies are now expecting to close that deal by the second quarter of 2022, according to the latest update.
Source: https://www.financemagnates.com/fintech/news/playtech-raises-concern-over-aristocrat-bid-clearance/